Tuesday, September 20, 2011

UPRA to Netflix: Oh, where do we begin?

So, Netflix, apparently your new DVD-by-mail company, Qwikster, is also a stoner soccer fan who recently made it to level 25 in Original Gangstaz.

Yes, you started a new business and forgot to secure the corresponding Twitter handle, and now a shlub who can't spell has almost 10,000 followers and dreams of a big payday (which, by the way, he probably won't get).

But, funny as that was, it's the least of the things you did wrong yesterday, from a PR perspective.

Since the deed is kinda done, there's little reason to give advice. So I'll just tell you what you did wrong.

And let me remind you that this is a PR advice blog. I have very little to say about your business decision to split off your DVD mailing business. That might make sense in the long run, but the way you announced it yesterday was riddled with stumbles and gaffes. To wit:

  • You diluted one of the strongest brands in the country. Years ago you joined the elite ranks of Xerox and Google as one of the very, very few brand names that have become verbs. ("Did you see that movie with that actor?" "Yes, I Netflixed it." "What's that actor's name?" "I don't know, Google it. Then print it out and Xerox it.") I understand that DVD mailing is very different from instant streaming, and I understand the need to give that business its own model and its own space. But for the love of all that is holy, keep your brand attached to it. (And no, "Qwikster: A Netflix Company" isn't enough.)
  • You failed to understand the sentiment of your customers. Your email to customers (and blog post) apologized for the way in which you announced changes to your pricing structure. But guess what? Nobody gave a rat's ass about the way you announced it. They're just mad about having to pay more. And that's understandable. But look, setting your own prices for your own stuff is your right, and if that's what you need to do, do it. Some people will drop the DVDs by mail service, some will drop you entirely. But if that change leads to long-term growth, terrific for everybody. No need to apologize. But if you do apologize, at least apologize for the thing that made people mad.
  • You tried to put two massive and contradictory messages into one communication. And you did it in the weirdest, most awkward manner I've ever seen. I fervently preach singularity of message. Every communication should carry one and only one single, simple, clear message. That can't always happen, of course, but it's usually possible, even if you have to labor a little bit to squish two messages together into a single one. But you ... oh my God you screwed this up. You spend three paragraphs grovelling and kissing my ass and asking for forgiveness, and then announce the launch of a new business? In the same damn email? Really? "So, hey guys, sorry we pissed you off, but you know that thing that pissed you off? Yeah, it has its own website now." Next time, either skip the apology altogether, or only issue the apology by itself. Express regret, point out successes despite the possible missteps. Let that sit and breathe for a week or two, let the complaints roll in for a bit and die down, and then announce your new venture. That announcement should be good news, exciting news, not something you offer up as part of an apology to mollify an angry mob. 
  • You broke the Number One Rule of Public Relations. You panicked. Remember when I said the Twitter debacle wasn't that big of a deal? It's really not, in the big scheme of things. You can get @qwikstermovies or @qwiksterDVDs or something. And I don't imagine you do a lot of DVD by mail business on Twitter. But your failure to even check and see whether anyone had @qwikster registered means you made the announcement in a hurry. Which means you panicked. And what's the number one rule of public relations? That's right, Don't Panic.
Netflix, you'll probably be fine. You have an awesome new PR opportunity coming up in the form of that Kevin Spacey series made just for you. You still have a lot of customers, and you'll keep getting more. You'll stave off or at least absorb competition from HBO GO, Hulu Plus, Blockbuster and other services.

And no, this wasn't the worst PR disaster of all time. But it's about as bad a series of blunders as any of us will ever see. Hope it all works out for you.

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